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Audio Video Standard, or AVS, is a compression codec for digital audio and video, and a possible alternative to H.264/AAC/Vorbis, meant to potentially replace MPEG-2. Chinese companies own 90% of AVS patents. The audio and video files have an .avs extension as a container format, and the designers claim that it will have twice the efficiency of MPEG2.
Overview
Development of AVS was initiated by the government of the People's Republic of China. Commercial success of the AVS standard would not only reduce China's royalty/licensing payments to foreign companies, it would presumably earn China's electronics industry recognition among the more established industries of the developed world, where China is still seen as an outlet for mass production with limited indigenous design capability.

In January 2005, the AVS workgroup submitted their draft report to the Information Industry Department (IID). On March 30, 2005, the first trial by the IID approved the video portion of the draft standard for a public showing time.

The dominant audio/video compression codecs, MPEG and VCEG, enjoy widespread use in consumer digital media devices, such as DVD players. Their usage requires Chinese manufacturers to pay substantial royalty fees to the mostly-foreign companies that hold patents on technology in those standards. For example, as of 2006, licenses ranging from $2.50 to $4 already make up about ten percent of the cost for a contract-manufactured DVD player unit.

According to the state-run media, a key consideration of AVS was to reduce foreign dependence on core intellectual properties used in digital media technology. Proposed as a national standard in 2004, AVS had a targeted royalty of 1 RMB (or about $0.10 USD) per player. On 30th April, 2005, AVS standard video officially passed the public show and became the national standard.

AVS is currently expected to be approved for the Chinese high-definition successor to the Enhanced Versatile Disc.

Open source implementations of an AVS video decoder can be found in the OpenAVS project and within the libavcodec library. The latter is integrated in some free video players like MPlayer, VLC or xine. xAVS is also an open source AVS encoder with a working decoder.

In September 2007 DVD-forum appointed a new standard for High definition media expressly meant for the Chinese market, the so-called CH-DVD. As the name suggests, this standard follows in the steps of HD-DVD, being in fact fully compatible, but also adding official support for AVS besides Mpeg4/AVC and VC-1 codec: therefore CH-DVD readers will be able to read HD-DVD discs, but HD-DVD readers may not do the same because they don't have support for AVS codec.

 

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